CITIC 16161

CITIC 1616 Holdings Limited 中信

1616

集團有限公司

(Stock Code: 1883)

Interim Results Announcementfor the six months ended 30 June 2009

18 August 2009

Interim Results Announcementfor the six months ended 30 June 2009

18 August 2009

CITIC 16162

Highlights for the Six Months Ended 30 June 2009Highlights for the Six Months Ended 30 June 2009

Profit attributable to the equity holders of the Company increased by 17.7% to HK$177.8 million, as compared against last yearTurnover recorded a 18.2% growth of as compared to 2008Revenue generated from Voice services amounted to HK$842.6 million, representing a 15.3% increase as compared to 2008Revenue generated from SMS services rose 17.9% compared against last year to HK$137.8 million in 2008Revenue generated from Mobile VAS rose by 49.7% to HK$56.3 millionRevenue generated from Data services rose 22.3% to HK$ 296.8 millionAs at 30 June 2009, cash and cash equivalents was HK$841.5 millionNo debt as at 30 June 2009Interim dividend of 2.4 cents (2008 Interim: 2 cents), an increase of 20.0% as compared to 2008

3

Financial ReviewFinancial Review

CITIC 16164

0

300

600

900

1,200

1,500

2008 2009

TurnoverTurnover

18.2%18.2%

Six months ended 30 June

1,333.5

1,128.1

TurnoverTurnover

HK $m

Turnover increased 18.2% to HK$1,333.5 million when compared with last year

64.8%

10.4%

3.3%

21.5%

63.2%

10.3%

4.2%

22.3%

Data ServicesSMS ServicesVoice Services Mobile VAS

CITIC 16165

0

50

100

150

200

250

300

350

2008 20090

10

20

30

40

50

60

2008 2009

0

30

60

90

120

150

2008 2009

Turnover of Four Major Business SegmentsTurnover of Four Major Business Segments

Voice Services Voice Services

0

200

400

600

800

1,000

2008 2009Six months ended 30 June

842.6731.0

HK$ m

15%15%

SMS ServicesSMS Services

137.8116.9

HK$ m

18%18%

Mobile VASMobile VAS

56.3

37.6

HK$ m

50%50%

Data ServicesData Services

242.6

296.8

HK$ m

22%22%

Six months ended 30 June

Six months ended 30 June Six months ended 30 June

CITIC 16166

Turnover BreakdownTurnover Breakdown

0

500

1,000

1,500

2,000

2,500

1-12/2008 1-6/2008 1-6/2009

Turnover Breakdown Turnover Breakdown —— by Businessby Business

HK$m

63.2%

4.2%22.3%10.3%

1,333.5

10.4%

1,128.1

21.5%18%18%

3.3%

64.8%

64.9%

9.9%

2,486.4

21.4%

3.8%

Data ServicesSMS ServicesVoice Services Mobile VAS

CITIC 16167

Profit GrowthProfit Growth

151.1177.8

0

40

80

120

160

200

2008 2009

HK$m

Six months ended 30 June

Net profit attributable to the equity holdersNet profit attributable to the equity holders

18%18%

CITIC 16168

Sustain Solid MarginSustain Solid Margin

* 2007: It excluded interest income from IPO and included CPCNet’s whole year impact.

21.6%

20.6% 20.0%

16.0%16.4% 16.1%

13.3%13.4%

13.7%

5%

10%

15%

20%

25%

30%

2007* 2008 6/2009

EBITDA margin Operating margin Net margin

CITIC 16169

Strong Liquidity and Capital StructureStrong Liquidity and Capital Structure

30 JuneHK$m

Operating profit before changes in working capital

Net cash generated from operating activities

+ Interest received

Capital expenditures (including Capital commitments)

20092008

At 30 Jun 2009HK$m

Cash and cash equivalents

Debt

Gearing ratio

841.5

- NIL -

Net Cash

30 June

At 31 Dec 2008

795.0

- NIL -

Net Cash

226.4

202.4

83.8

261.8

241.6

69.9

CITIC 161610

Government of SingaporeInvestment Corporation

Pte Ltd.5.4%

Others33.5%

Cornerstone Investors

8.5%

CITIC PACIFIC52.6%

Shareholding StructureShareholding Structure

11

Business ReviewBusiness Review

CITIC 161612

Major Business Segment – Voice ServicesMajor Business Segment – Voice Services

Handled approximately 5.05bn mins voice traffic

20092009

Six months ended 30 June

Rest of World56.1%

China 43.9%

20082008

Rest of World48.5%

China 51.5%

Voice Sales by customerVoice Sales by customer

842.6

731.0

0

200

400

600

800

1,000

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

2008 2009

Voice ServicesVoice Services

0.211Rev per min (HK$)

HK$m

Six months ended 30 June

5,048

(mn mins)

45.5%45.5%

15.3%15.3%

0.167

3,47116.1%

14.1%

72.2%

11.7%

77.4%

8.5%

International (LHS)

China Inbound (LHS)

Turnover (RHS)

China Outbound (LHS)

CITIC 161613

Major Business Segment – Voice ServicesMajor Business Segment – Voice Services

Expanded voice product portfolio with China and International operators to leverage on existing relations and resources (e.g. 3G video call)Interconnected with 40 new international customers for voice businessEstablished direct interconnect to Qatar, South Africa, Brazil, and BangladeshEntered a strategic partnership with the world’s largest long-distance phone companyCompleted the acquisition of Macquarie TelecomMerged in ChinaMotion Netcom successfully

Challenge in the period:- Change of market condition including price pressure of voice services

CITIC 161614

20082008 SMS Sales by customerSMS Sales by customer

Handled approximately 0.80 bn SMS messages

Major Business Segment – SMS ServicesMajor Business Segment – SMS Services

Six months ended 30 June

Rest of World56.9%

China43.1%

2009200920092009

Rest of World59.2%

China 40.8%0

300

600

900

1,200

1,500

2008 2009

38.3%

18.8%

19.4%

23.5%

796.0

International (LHS)

China Inbound (LHS)

53.9%

17.4%

986.6

16.0%12.7%

SMS ServicesSMS Services

0.118 0.173Rev per message (HK$)

Turnover (RHS)

(mn messages)

Hong Kong (LHS)

Six months ended 30 June

China Outbound (LHS)

17.9%17.9%

HK$’m

116.9

137.8

0

20

40

60

80

100

120

140

160

19.3%19.3%

CITIC 161615

Riding on the 3G evolution of the Chinese mobile market to further leadership in international SMS for all mobile carriers in China. Inter-standard SMS delivery amongst different China 3G standards for more than 80 countries worldwideAs one of the leading GSMA recognized "Open Connectivity (OC)" SMS hubs, CITIC has further strengthen our position in the CDMA community to provide SMS delivery to both GSM and CDMA operatorsExtended SMS service converge to middle East, Eastern Europe, USA, and CIS region (formally known as Soviet Unions)Extended enterprise SMS capability

Major Business Segment – SMS ServicesMajor Business Segment – SMS Services

CITIC 161616

0

20

40

60

80

2008 2009

Mobile VASMobile VAS

HK$m

49.7%49.7% 56.3

37.6

Revenue - Mobile VAS

Six months ended 30 June

Major Business Segment – Mobile VASMajor Business Segment – Mobile VAS

Benefits from Chinese granted 3G mobile license, inter-standard roaming and VAS of roaming voice and data activities can be carried out with CITIC roaming platformVirtual International Access Number, enhanced version of "Single IMSI Multiple Number (SIMN)" creates a new market demands in countries such as USA, Philippines, Italy and Hong KongAmount of subscribers on CITIC "Prepaid Roaming Hubbing" service increased significantly, including operators customers in China, Hong Kong, Taiwan and Macau, Philippines, Malaysia, Japan, Italy, Thailand, Indonesia, Korea, UK, Greece and Singapore Formally establish CITIC as a CDMA roaming service provider with a partnership with TNSI

.

CITIC 161617

Major Business Segment – Data Business

0

50

100

150

200

250

300

350

400

2008 2009

VPN Other Data Business

208.6

Six months ended 30 June

180.1

HK$m

22.3 %22.3 %

Continue to maintain stable revenue growth with improvement of net profit margin Obtained the ISO 9001:2000 and 27001 Information Security Management System Certification

AchievementsITeS Best Choice Award under IDC hosting service; Enterprise video conferencing service; Vulnerability assessment and recovery managed service & MPLS VPN serviceThe 41th Distinguished Salesperson Award (DSA) by Hong Kong Management Association Customer Relationship Excellence (CRE) Awards by Asia Pacific Customer Service Consortium - the awards on “People Development Program” and “Integrated Support Team”Outstanding Strategic Performance Awards by Capital MagazineThe Golden Peak Awards by Outstanding Enterprise Manager Association (Taiwan) - Outstanding Enterprises of the Year & Outstanding Entrepreneurial Leaders of the Year

62.588.2242.6

296.8

18

ProspectsProspects

CITIC 161619

ProspectsProspects

Core BusinessesStable growth in voice services business; expand retail voice servicesMaintain growth in SMS businessFocus on the development in new markets for Mobile VAS business

New BusinessThe acquisition of Macquarie Telecom Pte Ltd. strengthens the Group’s business foundations in Singapore and will act as our stepping stone to Middle East, Africa and South Asia

20

Q&AQ&A